BRICS Financial Shift: Local Currencies and Cross-Border Payments Move Into the Next Phase

BRICS is moving its financial cooperation from broad discussion toward practical payment and settlement mechanisms with members promoting local-currency trade and more efficient cross-border payments while stopping short of creating a common BRICS currency OVERVIEW • India has clarified that BRICS is not creating a common currency. Instead, the group is exploring greater use of its members’ national currencies for bilateral and multilateral trade and settlement. Indian officials say local-currency settlement could reduce transaction costs and provide additional options for cross-border payments. • BRICS is pushing for faster, cheaper and more accessible cross-border payments. The New Delhi Declaration encourages the…